The first thing we did was look at Tom’s proposal and began the process of perfecting the plan to help him take over the gym. Over several meetings, we took elements of the proposal and discussed ways of improving it, and we talked Tom through what he would need to consider in running his own business. This included his options regarding legal and trading statuses, explaining the different types of tax he would be exposed to and how to go about recruiting and paying his employees. This left Tom more knowledgeable and with a stronger proposal.
‘Aldous and Saunders are more than accountants,’ says Tom. ‘They give you more in-depth services, offering business guidance and financial advice. His bid was accepted and Amazon Gym was his.
A company is born!
But that isn’t the end of the story, before Amazon Gym could be his, Tom needed to register and set up his new business. We discussed the decision to make Amazon Gym a limited company and, with Tom’s approval, we started the process of registering the new company and outlining his new responsibilities as a director.
Once we’d registered Amazon Gym, we added Tom as a new director and we also registered the company for payroll, company taxes, and offered guidance in setting up his new business bank account.
Now that the company was trading, we got down to the business of addressing the company accounts. Tom agreed to use our cloud-based accounting option which allows both him and us to keep up-to-date records quickly and easily using a mobile phone app and an online cloud accounting system. All Tom needed to do is was send us his monthly earnings and refresh his bank feed allowing us to organise it in the system and ensure his taxes are correct and paid on time.
Choosing the right Accounts package.
Tom chose a cloud-based accounting system because it’s ‘paperless, more efficient and frees up your time’. He says he particularly finds it useful when ‘out and about, you can scan (the receipt) straight away, so you won’t lose it.’ All Tom has to do is scan his receipts using the Receipt Bank App on his phone, we then add it to his cloud accounting software and work out his VAT on a quarterly basis, taking away all the hassle.
Now Tom can concentrate on running the business while remaining in full financial control. On top of all of that, we secured a four-figure VAT rebate for Tom on the company’s start up purchases.